Climate change is affecting the whole world these days, as many greenhouse gases are being released into the atmosphere. The fundamental culprit is the economy’s reliance on nonrenewable resources, such as energy and products derived from fossil fuels. Therefore, it is necessary to seek other techniques to address these difficulties. Applying the concepts of the circular bioeconomy offers a sustainable way to eliminate negative consequences by boosting the exploitation of bio-based resources. By substituting fossil-fuel-derived energy and goods with plant-based alternatives, the consequences of climate change can be mitigated throughout the product life cycle. In addition, implementing circular bioeconomy principles enables efficient management of biomass-based resources by integrating circular economy concepts into the bioeconomy framework. The key objectives of a circular bioeconomy include ensuring food security, increasing resource-efficient use, reducing greenhouse gas emissions, reducing dependence on fossil fuels, and creating employment opportunities. This research aims to examine the role of bio-based resources within the circular bioeconomy framework and explore their potential to enhance economic and environmental sustainability. Mainly, key areas such as the conceptual framework of circular bioeconomy, suitable technologies for plant conversion, circularity strategies in plant-based bioeconomy systems, environmental and socioeconomic impacts, policy and regulatory frameworks, and future perspectives and research directions were critically analyzed.